Living Will Replace EU Currency Field For Free

Normally that would cause Germany's currency to strengthen, but since there was trouble down south, the euro weakened, making German exports even more competitive. The second way the euro helps Germany is that it has given them a much larger market to dump their goods.

The former US Federal Reserve chairman Alan Greenspan said late last year that it is absolutely conceivable that the euro will replace the dollar as reserve currency, or will be traded as an equally important reserve currency.No currency other than the euro poses a threat to the dollar's pole position.

The euro, however, is a credible challenger: Euroland is roughly as big as the United States, and the euro has shown itself a better store of value than the dollar.To be sure, rankings of international currencies change only very slowly.

After a decade of preparations, the euro was launched on 1 January 1999: for the first three years it was an 'invisible' currency, only used for accounting purposes and electronic payments. Coins and banknotes were launched on 1 January 2002, and in 12 EU countries the biggest cash changeover in history took place.

The main benefits of the euro are related to increased trade. Travel was made easier by removing the need for exchanging money. More importantly, the currency risks were eliminated from European trade. With the euro, European businesses can easily lock in the best prices from suppliers in other eurozone countries.

A single currency makes the euro area an attractive region for third countries to do business, thus promoting trade and investment. Prudent economic management makes the euro an attractive reserve currency for third countries, and gives the euro area a more powerful voice in the global economy.

But the worth of other currencies will significantly rise in the coming years. However, as of today, the Chinese Yuan remains far from anywhere near the US dollar in terms of trade or as the reserve currency of central banks.